Sonic Corp. (SONC) Receives Average Rating of “Hold” from Brokerages
Sonic Corp. (NASDAQ:SONC) has been assigned an average rating of “Hold” from the seventeen ratings firms that are currently covering the stock, MarketBeat reports. Four investment analysts have rated the stock with a sell rating, nine have given a hold rating and four have issued a buy rating on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $27.58.
Several brokerages recently commented on SONC. BidaskClub lowered Sonic Corp. from a “buy” rating to a “hold” rating in a research report on Saturday, June 24th. Zacks Investment Research upgraded Sonic Corp. from a “sell” rating to a “hold” rating in a research report on Saturday, May 27th. Piper Jaffray Companies restated a “buy” rating and set a $32.00 target price on shares of Sonic Corp. in a research report on Wednesday, July 26th. Stephens restated an “overweight” rating and set a $32.00 target price on shares of Sonic Corp. in a research report on Monday, June 26th. Finally, Oppenheimer Holdings, Inc. restated an “outperform” rating and set a $29.00 target price on shares of Sonic Corp. in a research report on Monday, June 26th.
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Shares of Sonic Corp. (NASDAQ SONC) traded up 2.93% during trading on Tuesday, reaching $23.89. The company’s stock had a trading volume of 595,794 shares. The firm has a market cap of $998.82 million, a PE ratio of 15.93 and a beta of 1.77. The company’s 50 day moving average price is $23.70 and its 200 day moving average price is $25.77. Sonic Corp. has a 12 month low of $21.12 and a 12 month high of $30.05.
Sonic Corp. (NASDAQ:SONC) last announced its earnings results on Thursday, June 22nd. The restaurant operator reported $0.43 EPS for the quarter, beating the consensus estimate of $0.41 by $0.02. Sonic Corp. had a negative return on equity of 44.21% and a net margin of 13.23%. The company had revenue of $124.00 million for the quarter, compared to analyst estimates of $122.58 million. During the same quarter in the prior year, the company earned $0.43 EPS. The firm’s revenue for the quarter was down 24.9% compared to the same quarter last year. On average, equities analysts predict that Sonic Corp. will post $1.24 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, August 18th. Shareholders of record on Wednesday, August 9th were issued a $0.14 dividend. The ex-dividend date of this dividend was Monday, August 7th. This represents a $0.56 annualized dividend and a yield of 2.34%. Sonic Corp.’s payout ratio is currently 37.33%.
Sonic Corp. declared that its Board of Directors has initiated a stock repurchase program on Wednesday, August 9th that permits the company to repurchase $160.00 million in outstanding shares. This repurchase authorization permits the restaurant operator to buy up to 16.2% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.
In other news, Director Steven A. Davis purchased 2,000 shares of the business’s stock in a transaction on Friday, July 21st. The shares were acquired at an average price of $24.62 per share, for a total transaction of $49,240.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In the last quarter, insiders acquired 5,000 shares of company stock worth $117,730. Corporate insiders own 6.24% of the company’s stock.
Large investors have recently made changes to their positions in the business. Riverhead Capital Management LLC boosted its holdings in Sonic Corp. by 77.7% in the second quarter. Riverhead Capital Management LLC now owns 4,797 shares of the restaurant operator’s stock worth $127,000 after acquiring an additional 2,097 shares in the last quarter. Flinton Capital Management LLC raised its stake in shares of Sonic Corp. by 74.5% in the second quarter. Flinton Capital Management LLC now owns 6,290 shares of the restaurant operator’s stock worth $167,000 after purchasing an additional 2,686 shares during the last quarter. Karp Capital Management Corp purchased a new stake in shares of Sonic Corp. in the first quarter worth approximately $209,000. LSV Asset Management purchased a new stake in shares of Sonic Corp. in the first quarter worth approximately $218,000. Finally, State of Alaska Department of Revenue raised its stake in shares of Sonic Corp. by 72.7% in the second quarter. State of Alaska Department of Revenue now owns 8,378 shares of the restaurant operator’s stock worth $221,000 after purchasing an additional 3,528 shares during the last quarter.
Sonic Corp. Company Profile
Sonic Corp. operates and franchises the chain of drive-thru restaurants (Sonic Drive-Ins) in the United States. As of August 31, 2016, 3,557 Sonic Drive-Ins were in operation from coast to coast in 45 states, consisting of 345 Company drive-thrus and 3,212 franchise drive-thrus. As of August 31, 2016, its restaurant design and construction consisted of a kitchen housed in a one-story building, which was approximately 1,500 square feet, flanked by canopy-covered rows of 16 to 24 parking spaces, with each space having its own payment terminal, intercom speaker system and menu board.
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